New York Tax Lawyer

In most cases people are aware of the Internal Revenue Service or IRS and the importance of filing yearly taxes. However if people fail to pay taxes for several years or do not pay enough taxes the amount of debt that they owe the IRS may be substantial. In many cases individuals are unable to pay the large amount the IRS demands. In response to Congress mandate, the IRS has established a special program known as the Offer in Compromise that is designed to legally settle their debt.

The program is basically a way for consumers to settle their debt with the IRS for less than they owe. The taxpayer gets a chance to formally appeal to the IRS for leniency on their tax debts. The IRS makes the final decision on whether you can have a break. The taxpayer is ultimately responsible for proving that they are financially unable to make full payment on the debt or there is a possibility that the debt reported does not belong to them.

The IRS does have plans that they can offer to taxpayers who are in a financial bind. In the majority of the cases the IRS offer is less than what you actually owe but the final amount that you have to pay is calculated by an IRS method. Individuals have 3 main offers to choose from under the Offer in Compromise Program. The first IRS offer is Doubt as to Liability.

This offer is simple to understand because if you fall under this offer you feel you can prove that the tax debt is incorrect. Basically the taxpayer does not believe they owe the money.

It is your responsibility to prove that you do not owe the money using documentation or other evidence. Those individuals who have found themselves a victim of mistaken identity or Identity Theft are generally offered the Doubt as to Liability plan.

The second offer is referred to as Doubt as to Collectability and it is the most common type. In other wards the IRS feels that they will never fully collect the amount that they are due from the taxpayer.

In other wards no matter the circumstances or the individual's future financial situation the IRS concludes that they will not be able to pay the entire amount. Under these circumstances the IRS will try to come up with a reasonable settlement by taking into account the total of amount of disposable income as well as assets the individual has. The Effective Tax Administration is the third type of offer and it is generally viewed as the least accepted IRS offer.

Some taxpayers based on their income can afford to pay their tax debt but making them do so might be unfair.

American Tax Lawyer, Darrin T. Mish represents taxpayers all over the United States and on every inhabited continent. His many years of experience in dealing with tax problems benefits clients tremendously. He may be reached by calling toll free (888) 438-6474.